Contribution Rate on Disability

An important benefit provided by the Plan is that a disabled participant continues to earn pension credits and the disabled participant and school need not make contributions.  For purposes of calculating benefits earned, the contribution rate in effect on the date of disability is used for the duration of the disability regardless of any changes made by the school.

In addition, for a disability that commenced prior to September 1, 2010 and continues, the contribution rate used to calculate benefits is:

    For those who were accruing benefits under the 4.5% contribution rate on August 31, 2010 the contribution rate increased to 7%. 

    For those who were accruing benefits under the 6% contribution rate on August 31, 2010 the contribution rate increased to 8.05%.

If the school of a disabled participant ceases to participate in the Plan, prior to the end of a participant’s disability, benefit accrual will continue throughout the disability. 

Full Issue: No. 179 - October 5, 2011

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